A proposed tax cut by U.S. President Donald Trump could be a big win - or a relatively insignificant win - for the crypto industry if it is passed.
In a news conference at the White House earlier this week, President Trump said that his administration was "Very seriously" considering a capital gains tax cut.
"We're looking at also considering a capital gains tax cut, which would create a lot more jobs."
There is a debate over the extent of President Trump's ability to deliver tax cuts.
The long term capital gains rate of 20% is primarily governed by Congress, so to deliver a big cut he'd need to get lawmakers on side via negotiation.
An executive order could be used to cut tax bills in a move known as indexing capital gains to inflation.
Americans are required to report gains and losses on each cryptocurrency transaction, or when they earn cryptocurrency via staking, whether or not they have made a profit.
As staking rewards gather momentum, tax authorities in the U.S. are keeping up with the game.
The impending introduction of staking on Ethereum 2 will be a capital gains nightmare for stakers as recipients need to record the amount, and current price, of rewards each time they are distributed.
If Donald Trump manages to push through his proposed capital gains tax cut, it will at least offer the opportunity to keep at least a little more of the gains after all the recording keeping and paperwork has been completed.
Trump's Proposed Capital Gains Tax Cut Could Boost Crypto Profits
gepubliceerd op Aug 13, 2020
by Cointele | gepubliceerd op Coinage
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